The nine companies and organizations tasked with servicing the accounts of the nation's 30 million student loan borrowers repeatedly failed to do their jobs properly over a period of years, a new report finds.
The American Federation of Teachers filed a lawsuit Wednesday against Navient, alleging that it failed to guide eligible borrowers through a critical student loan forgiveness program. Navient has major operations in Fishers.
The Trump administration is granting only partial loan forgiveness to the vast majority of students approved for help because of fraud by for-profit colleges, according to preliminary Education Department data.
Seth Frotman will be stepping down as student loan ombudsman at the end of the week, citing what he says is the White House's open hostility toward protecting the nation's millions of student loan borrowers.
The Department of Education is considering only partially forgiving federal loans for students defrauded by for-profit colleges, according to department officials, abandoning the Obama administration's policy of erasing that debt.
Students who attended for-profit colleges were twice as likely or more to default on their loans than students who attended public educational institutions, according to a federal study published Wednesday.